> ## Documentation Index
> Fetch the complete documentation index at: https://docs.getasset.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Profit and Loss Report

## **Overview**

The **Profit & Loss** (or Income Statement) summarizes a [Business’s](/getstarted/CoreConcepts#businesses-your-smb-customers) revenue and expenses over a specific period. It calculates net income (profit or loss) by subtracting total expenses from total revenue.

Key components:

* **Revenue** – Money earned from Business operations.
* **Cost of Goods Sold (COGS)** – Direct costs of producing goods or services.
* **Gross Profit** – Revenue minus COGS.
* **Operating Expenses** – Costs of running the Business (e.g., salaries, rent, utilities).
* **Net Income** – The final profit or loss after all expenses are deducted.

A Profit & Loss Report helps Businesses assess profitability and track financial performance over time.

## **How to Generate a Profit and Loss Report**

1. Call the [Retrieve the Profit and Loss Report](/api-reference/reports/retrieve-the-profit-&-loss-report) endpoint with:
   1. Business ID
   2. Start Date
   3. End Date

2. Use the returned data to structure the report as follows:
   1. **Revenue**
      * Sales Revenue
      * Other Revenue ledgers
      * **Total Revenue**

   2. **Cost of Goods Sold**
      * Cost of goods sold
      * Other COGS ledgers
      * **Total COGS**

   3. **Gross Profit**

   4. **Operating Expenses**
      * Display all relevant Operating Expense ledgers
      * **Total Operating Expenses**

   5. **Operating Profit**

   6. **Other Incomes and Expenses**
      * Other income (e.g., investment earnings)
      * Other expenses (e.g., loan interest payments)

   7. **Net Profit**

## **P\&L Best Practices**

* **Filter by date range** – Use a date picker with standard periods like months, quarters, and years to give users control.
* **Hide zero-value [Ledgers](/getstarted/CoreConcepts#ledgers)** – The API returns all Ledgers, including those with a balance of \$0. Hiding these improves clarity.
* **Enable drill-down into ledgers** – Users may want to inspect specific ledgers. Use the [Ledger Statement](/bookkeeping/reports/ledgerstatement) report to provide detailed transaction data.

<Note> Questions? Reach out via our [Contact form](https://www.getasset.com/get-in-touch). </Note>